Hanmi Financial Corporation has completed a $55 million private placement of fixed-to-floating rate subordinated notes. The company plans to use the net proceeds to redeem its outstanding $110 million of callable subordinated notes and for general corporate purposes. The notes mature on July 31, 2036, and carry a fixed interest rate of 6.50% for the first five years, after which they will pay a floating rate equal to the three-month Secured Overnight Financing Rate plus 234 basis points, reset quarterly. Hanmi may redeem the notes without penalty starting July 31, 2031, or earlier upon certain specified events, and the notes are structured to qualify as Tier 2 capital for regulatory purposes. D.A. Davidson & Co. served as sole placement agent for the offering.
Hanmi Financial CorporationCompleted $55M subordinated debt offering to refinance existing debt and strengthen Tier 2 capital.